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weather events induced by climate change could pose a threat to global financial stability. In order to assess this risk, we …-income countries are more exposed to financial shocks. In high-end climate scenarios, this could lead to the emergence of systemic risk … financial network. Adaptation policy, or the lack thereof, appears to be one of the key risk drivers as it determines the future …
Persistent link: https://www.econbiz.de/10012831267
systematic risk, its management via derivative contracts and structured securities (CDO and CDS), its global contagion across …
Persistent link: https://www.econbiz.de/10013153067
We measure systemic risk in the network of financial market infrastructures (FMIs) as the probability that two or more … FMIs have a large credit risk exposure to the same FMI participant. We construct indicators of credit risk exposures in … differences in the contribution to systemic risk across participants. We also find that when participants are in financial …
Persistent link: https://www.econbiz.de/10011440454
Persistent link: https://www.econbiz.de/10015211711
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The study focused on the impact of the short-term and long-term financial risk on systematic risks through analyzing … 93.58% according to short and long-term financial risk under two control variables which are market capitalization of the …, and Alaghi, 2011, the study found that short-term financial risk increased which was explained by common stock …
Persistent link: https://www.econbiz.de/10012866345
systemic risk. Equity capital acts as a buffer against losses, and reduces incentives for excessive risk taking. Basel capital … lower capital requirements resulting in excessive risk taking. Furthermore, the bank and the CDS seller (insurer) prefer … high correlation in their returns and jointly shift the risk to the regulator. CDS can be traded at a price higher than its …
Persistent link: https://www.econbiz.de/10013089650
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According to theory, market concentration affects the likelihood of a financial crisis in different ways. The “concentration-stability” and the “concentrationfragility” hypotheses suggest opposing effects operating through specific channels. Using data of 160 countries for the period...
Persistent link: https://www.econbiz.de/10008748347
-based financial systems in spite of the emergence of sophisticated risk management tools and regulatory systems. If anything, the … increased frequency of modern crises underscores how difficult it is to diversify away systemic risk and that perceptions of … done to strengthen our financial systems. As the world addresses the financial impact of the COVID-19 pandemic, the …
Persistent link: https://www.econbiz.de/10012232895